COLUMBUS, Ind. — Cummins has continued its strong performance in the third quarter, reporting an 18% increase in net earnings on a 14% increase in sales, compared to the same period in 2005.
Sales for the quarter were $2.81 billion, compared to $2.47 billion for the third quarter of 2005. Net income of $171 million, or $3.37 a share, was up from $145 million, or $2.90 a share, in the same period last year.
Earnings before interest and taxes (EBIT) rose 23% to $296 million, or 10.5% of sales, while gross margins remained near record levels at 23.3% of sales.
Each of the company’s business segments enjoyed double-digit percentage sales growth in the third quarter, led by the power generation and distribution businesses, both of which performed above the top end of their targeted sales and profit ranges.
Sales in the engine business, the company’s largest segment, rose 10% despite a decline in light-duty automotive volumes late in the quarter as a result of plant shutdowns at automotive facilities related to inventory rebalancing.
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